Bitcoin Price Must Break $9,500 For A Chance At Assaulting $10k

31 Jan 2020

• Bitcoin price is stuck below a prominent resistance at $9,500 and prominent support at $9,400.
  
• Bitcoin is still in danger of breaking down to $8,000 especially with the formation of a rising wedge pattern.
  

Bitcoin price is stuck between two key zones; the stubborn resistance at $9,500 and the prominent support recently established at $9,400. The largest cryptocurrency in the world is trading 0.53% lower towards the end of the Asian session on Friday. This week’s trading has been mostly bullish apart from Wednesday’s retracement from levels above $9,400 to test another key support at $9,200.

The overwhelming support at $9,200 coupled with the high congestion of buyers waiting to buy at the same level, boosted Bitcoin back above $9,400. Unfortunately, the momentum is not strong enough to launch an attack at $9,500 (seller congestion zone).

It is essential that the resistance at $9,500 is broken as it will open the door to higher levels and put $10,000 into sight. On the contrary, the failure to rise above $9,500 is likely to leave the bulls demoralized. A lower correction could then be necessary to not only create fresh demand for BTC but also allow the bulls to find a launchpad for the attack at $9,500 and $10,000, respectively.

Rising Wedge Pattern
The formation of a rising wedge pattern brings into the picture an impending reversal that could have the potential to send Bitcoin back to $8,000 (support highlighted by the 38.2% Fibonacci retracement level).

For now, Bitcoin is trading at $9,454 as bulls fight tooth and nail to keep the price above $9,400. Technical indicators such as the RSI and the MACD show that bullish influence is still significant over the price. This means that sideways trading could take precedence before enough strength is gathered to push for higher correction.

Bitcoin Key Levels
Spot rate: $9,454

Relative change: $-50

Percentage change: -0.53%

Trend: Bearish

Volatility: Low